Business OpportunitiesPriority sector credit potential estimated at Rs 31,255 crore
National Bank for Agriculture and Rural Development (Nabard) has estimated a credit flow potential of Rs 31,254.74 crore for the priority sector in Karnataka, for 2010-11, an increase of 13.5 per cent over the present year.
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According to the potential-linked credit plan (PLCP) prepared by Nabard, the share of crop loan constitutes 45.6 per cent of the potential, estimated at Rs 14,247 crore, followed by other priority sector at 28.5 per cent or Rs 8,909 crore, agricultural term loan at 14.9 per cent at Rs 4,667 crore and non farm sector at 11 per cent or Rs 3,430 crore.
In its action plan to realise the potential next fiscal, Nabard has highlighted some issues that need to be addressed. It is important to ensure the availability of required quantities of quality seeds, fertiliser and pesticides, effective system to check sale of spurious fertiliser, pesticides, activation of seed certification machinery and other regulatory mechanism.
Formation of oral lessees, share croppers, landless farmers into joint liability groups (JLGs) on the pattern of SHGs and their linkage with banks, provision of adequate extension services to farmers, are the issues that need to be addressed, Nabard said in its focus paper.
The credit flow potential for farm mechanisation for 2010-11 has been estimated at Rs 787 crore, horticulture at Rs 908 crore and animal husbandry Rs 722 crore. Of this, Rs 475 crore is for dairy, Rs 156 crore for poultry and Rs 91 crore for sheep, goat and piggery development. Nabard has estimated the potential for wasteland development at Rs 49 crore and fisheries at Rs 64 crore for the next fiscal.
For the development of water resources in the state, Nabard has estimated the credit potential at Rs 595 crore during 2010-11. The ultimate irrigation potential in the state from all sources is estimated to be 6.1 million hectares.
Of the 176 taluks in the state, 65 are over-exploited, three are critical and 14 are semi-critical in terms of ground water status. Bijapur, Belgaum, Raichur, Bellary and Dharwad districts are facing the problem of salinity and districts like Tumkur, Kolar, Bangalore, Gulbarga, Bellary and Raichur have fluoride problem.
Since almost 50 per cent of the state’s area is under critical condition with respect to its ground water availability, greater emphasis should be laid on recharging groundwater, promoting micro irrigation and other water-saving techniques on a watershed basis. Through participatory water management, proper regulatory mechanism for use of ground water for agriculture purposes, has to be put in place by the state government, the state focus paper said.
Other areas of focus are improvement of energy use efficiency and energisation of pump sets, promote rainwater harvesting / rooftop water harvesting structures, artificial recharge of dug wells and cost effective recharge structures.